Pipeline operator Williams draws $5.34 billion from Blackstone-led group for power push

Williams can buy back Blackstone's stake between years 7 and 14 based on the amount of Blackstone's investment that remains outstanding.

The company said the deal reduces its capital commitment and preserves balance-sheet capacity for more projects, while allowing it to retain commercial and operational control in support of its long-term leverage target.

It added the partnership will help fund expansion of its Power Innovation business, which has more than 2.6 gigawatts of announced projects.

Surging power demand from AI and data centers is driving energy companies to build behind-the-meter projects that supply users directly, bypassing the grid, with private equity increasingly footing the bill to ease balance-sheet strain.

The deal covers Williams' Ohio projects — Socrates, Apollo, Socrates the Younger and Neo — along with Aquila, which are part of a broader pipeline of more than 6 gigawatts the company is developing.

Williams WMB.N said on Monday that a Blackstone BX.N-led consortium will invest $5.34 billion for a 49% noncontrolling stake in five of its power generation projects, providing the U.S. pipeline operator with capital to expand the business.